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INTRODUCTION TO PROJECT

The project presented here gives a detailed analysis of Retailer penetration of AMUL pouch milk in Kanpur market and the content being provided in terms of services to the customers. Milk is a most perishable item and demand of that product is increase day by day so company have to provide most frequently supply to the consumer .

I came to know about how to penetrate the product in the market threw the distribution channels. in this process I had identify that what is the actual demand of the product and what is the actual supply of that product in the market and what will be the effect if

1. SUPPLY(S)

< DEMAND(Y)

2. SUPPLY(S)

> DEMAND(Y)

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OBJECTIVES:

 To know ho w they can maximize their sale.

 To know how to increase number of ou tlets (r etailer s) in the city of Kanpur.

 To know abo ut retailer as well as consumer satisfaction level.

 To know w hat retailer wants fr om any co mp an y.

 To know the behavior of the dis tr ib utor for the retailer side.

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LIMITATIONS

 Limited time available for interviewing the respondents. As a result of this it was not possible to gather full information about the respondents.

 When I interviewed children, old-women and old man they are not able give answers according to the questionnaire due to absence of main retailer.

 As summer training is going under summer season so sometimes people are less interested in filling up questionnaire.

 Sometimes the problem which I face is Non-cooperative approach rude behavior of retailer about the ADA and company problem for which I have to make them understand.

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 If the respondents answer does not falls between amongst the options given then it will turn up to be a biased answer.

INTRODUCTION AND HISTORY

In the year 1946 the first milk union was established. This union was started with 250 liters of milk per day. In the year 1955 AMUL was established. In the year 1946 the union was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION. This union selected the brand name AMUL in 1955.

The brand name Amul means “AMULYA”. This word derived form the Sanskrit word “AMULYA” which means “PRICELESS”. A quality control expert in Anand had suggested the brand name “AMUL”. Amul products have been in use in millions of homes since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a symbol of many things like of the high-quality products sold at reasonable prices, of the genesis of a vast co-operative network, of the triumph of indigenous technology, of the marketing savvy of a farmers' organization. And have a proven model for dairy development (Generally known as “ANAND PATTERN”).

In the early 40’s, the main sources of earning for the farmers of Kaira district were farming and selling of milk. That time there was high demand for milk in Bombay. The main supplier of the milk was Polson dairy limited, which was a privately owned company and

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held monopoly over the supply of milk at Bombay from the Kaira district. This system leads to exploitation of poor and illiterates’ farmers by the private traders. The traders used to beside the prices of milk and the farmers were forced to accept it without uttering a single word.

However, when the exploitation became intolerable, the farmers were frustrated. They collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom movement. Sardar Patel advised the farmers to sell the milk on their own by establishing a co-operative union, Instead of supplying milk to private traders. Sardar Patel sent the farmers to Shri Morarji Desai in order to gain his co-operation and help. Shri Desai held a meeting at Samarkha village near Anand, on 4th January 1946. He advised the farmers to form a society for collection of the milk.

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These village societies would collect the milk themselves and would decide the prices at which they can sell the milk. The district union was also form to collect the milk from such village co-operative societies and to sell them. It was also resolved that the Government should be asked to buy milk from the union.

However, the govt. did not seem to help farmers by any means. It gave the negative response by turning down the demand for the milk. To respond to this action of govt., the farmers of Kaira district went on a milk strike. For 15 whole days not a single drop of milk was sold to the traders. As a result the Bombay milk scheme was severely affected. The milk commissioner of Bombay then visited Anand to assess the situation. Having seemed the condition, he decided to fulfill the farmers demand.

Thus their cooperative unions were forced at the village and district level to collect and sell milk on a cooperative basis, without the intervention of Government. Mr. Verghese Kurien showed main interest in establishing union who was supported by Shri Tribhuvandas Patel who lead the farmers in forming the Co-operative unions at the village level. The Kaira district milk producers union was thus established in ANAND and was registered formally on 14th December 1946. Since farmers sold all the milk in Anand through a co-operative union, it was commonly resolved to sell the milk under the brand name AMUL.

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At the

initial

stage

only

250

liters

of milk was collected everyday. But with the growing awareness of the benefits of the cooperativeness, the collection of milk increased. Today Amul collect 11 lakhs liters of milk everyday. Since milk was a perishable commodity it becomes difficult to preserve milk flora longer period. Besides when the milk was to be collected from the far places, there was a fear of spoiling of milk. To overcome this problem the union thought out to develop the chilling unit at various junctions, which would collect the milk and could chill it, so as to preserve it for a longer period. Thus, today Amul has more than 150 chilling centers in various villages. Milk is collected from almost 1073 societies.

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With the financial help from UNICEF, assistance from the govt. of New Zealand under the Colombo plan, of Rs. 50 millions for factory to manufacture milk powder and butter was planned. Dr.Rajendra Prasad, the president of India laid the foundation on November 15, 1954. Shri Pandit Jawaharlal Nehru, the prime minister of India declared it open at Amul dairy on November 20, 1955.

PEOPLE POWER: AMUL'S SECRET OF SUCCESS

The system succeeded mainly because it provides an assured market at remunerative prices for producers' milk besides acting as a channel to market the production enhancement package. What's more, it does not disturb the agro-system of the farmers. It also enables the consumer an access to high quality milk and milk products. Contrary to the traditional system, when the profit of the business was cornered by the middlemen, the system ensured that the profit goes to the participants for their socio-economic upliftment and common good.

Looking back on the path traversed by Amul, the following features make it a pattern and model for emulation elsewhere.

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Amul(G.C.M.M.F.) has been able to:

Produce an appropriate blend of the policy makers farmers board of management and the professionals: each group appreciating its rotes and limitations, Bring at the command of the rural milk producers the best of the technology and harness its fruit for betterment. Provide a support system to the milk producers without disturbing their agroeconomic systems,

Plough back the profits, by prudent use of men, material and machines, in the rural sector for the common good and betterment of the member producers and

Even though, growing with time and on scale, it has remained with the smallest producer members. In that sense. Amul is an example par excellence, of an intervention for rural change.

The Union looks after policy formulation, processing and marketing of milk, provision of technical inputs to enhance milk yield of animals, the artificial insemination service, veterinary care, better feeds and the like - all through the village societies. Basically the union

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and cooperation of people brought Amul into fame i.e. AMUL (ANAND MILK UNION LIMITED), a name which suggest THE TASTE OF INDIA.

PLANTS

First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk powder, flavored milk and buttermilk.

Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul, Amul Ganthia and Amul lite.

Third plant is at Kanjari, which produces cattelfeed.

Fourth plant is at Khatraj, which engaged in producing cheese.

Today, 13 dairies are producing different products under the brand name Amul. Today Amul dairy is no. 1 dairy in Asia and no. 2 in the world, which is matter of proud for Gujarat and whole India.

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COMPANY PROFILE

Gujarat Cooperative Milk Marketing Federation (GCMMF) is India's largest food products marketing organization. It is a state level apex body of milk cooperatives in Gujarat which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money. The seeds of ou r Gujarat Co-op erative milk mar ketin g federation w er e sown in November 1973 with the simple intention of ensu ring a fair return to tile producers. The intention was to receive all the milk offered by them.

The intention was to help member unions develop ad equate pr oduction an d processing facilities. The intention w as to process all the milk received.

The intention was to develop a produ ct -mix that wo uld promote sustained growth. Th e intention w as to off er cons umers qu ality products of fair prices and to do s o by achieving econ omics of s cale and costs. Th e intention w as to create an d expend a milk grid to max imize the availability of liquid milk.

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The intention was that milk Co-operatives w ould play an ever increasing role in th e rural economy , providing gainful employmen t to large number of producers.

The inten tion was to raise producer awar eness that they co uld mange th eir own affairs throug h Co-operatives that they contr olled . The intentio n was to create a s tructure ow ned by farmers that would, with time, be the f ar mer ’s best fr ien d. The intention was to es tab lis h a marketing and distribution system th at would reach ever y corner of the co untry with our prod ucts.

And the intention was that the highest levels of consumer co nfidence w ould be reposed in the brands called Amul and

Saga(In the chocolate unit camp co choco late is sold under Amul brand name)

It is fully made for the cons umer by th e consumer. In the Amul(G.C.M.M.F.) Company there are 17 -lakh farmers of Gujarat are shareh olders of Amul. This company collect the milk from there share ho ld ers about 30-lakh Liters per day in the pure from at 13- places in the G ujar at. This co mp an y has thr ee tier of system.

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 Village Co- operative  Member union.  Federation (G.C.M.M. F Ltd.)

In the sense of three tier o f sy stem company collects the milk fr om village Co-operative by th er e 17- lak h far mer (Shar e holder s) at the 1 3- member union in Gujarat f or the separation in th e form of Liquid and Gel. After the pro cessing of the milk th is member union s end the pro ducts to the federation divis io n for mar ketin g behin d the brand G.C.M.M. F. Ltd. and in th e field products ar e sold u nder the brand name of Amul and Sagar.

COMPANY DREAM



Achieve 50 % market s hare.



Outlet of strategic points.

 

Placement of point of purchas e in 100% ou tlets . 52554 Rs (million) & 1325 US $ (in million) Tur n over by 2007-08 and 1000 Crores turnover by 2010.

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TQM POLICY

In 1994 federation had embarked on the TQM(Total Quality Management) .In 1999 it received Rajiv Gandhi National Quality Award for the year.

More than 25000 Kaizen’s (Small improvement in work areas) where made by the federation indifferent areas. Workshops on SQC(Statistical Quality Control) have been conducted across the member dairies to achieved total quality in the production process.

More than 225 Amul Quality circles have been created though the length and breadth of the country. These efforts are the secrets of Amul top quality product.

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VALUE OF THE GCMMF LTD. (AMUL)

Customer orientation Co-operation Quality Belongingness Commitment to producers Excellence Innovation Pride in organization Integrity Leadership Growth Orientation-New Products Employees Satisfaction

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OPERATION FLOOD

The trans itio n of the In dian milk indus try f rom a situation of net impor t to th at of surplus has been led by the eff orts of National Dairy Development Board’s Operation Flood. Programmed under the aegis of the former Chairman of the boar d Dr.V.Kur ian .

Launched in 1970, Operation F lo od has led to th e modernization of I ndia’s dairy sector and created a strong network for procurement pr ocessing and distribution of milk by the co-o perative sector.

Per capita av ailability of milk h as incr eased from 132 gm per day in 1 950 to over 220 gm per day in 1998.

The main thr ust of Operation Flood w as to organize d air y co-oper ativ e in the milk shed areas of the village, and to link them to the four Metro cities ,

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which are the main markets for milk. Th e effo rts under taken by NDDB hav e not only led to enhance.

Production , improvement in methods of proces sing and developing o f a strong marketing netw ork, but have also led to the emergence of dairyin g as an important source of employment and income generation in the rural areas.

It has also led to an improv emen t in yields, longer lactatio n periods, shorter calving interv als , etc through the us e of mo dern breeding techniques.

Establishmen t of milk collection centers and chilling center s has enhanced lif e of raw milk and en ab led minimization of wastage due to spoilage of milk.

Operation Flood has b een one of the world’s larg est dairy dev elo pments programmed an d looking at the success achiev ed in In dia by adopting the cooperative route, a few other countries have als o rep licated the model of India’s White Revolution .

What does the Indian Dairy I ndustry h as to offer to Foreign Investor s? India is a land o f opportunity for inv es tors looking for n ew and expand in g markets.

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Dairy fo od processing h olds immen se potential for high returns. Gr owth prospects in the d air y fo od sector are termed healthy, accor ding to variou s studies on the subject.

The basic in frastructural elements for a successful enterprise are in place.

key elements of free mar ket sys tem

raw material (milk) av ailab ility an established infr as tructure of technology supporting manpower

An entrepreneur ’s participation is likely to provide attractive r etu rns o n the in vestment in a fast growing mar ket such as India.

Along with an ex port potential in the Middle East, S in gapore, M alay sia, Indonesia, Korea, Th ailand , Hon g Kong and other cou ntries in th e region.

Among sever al areas o f potential participation by NRI s and for eig n investo rs.

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BOARD MEMBERS

Shri Ramsinh Prabhatsinh Parmar Shri Rajendrasinh Dhirsinh Parmar Shri Dhirubhai Amarsinh Zala Smt. Mansinh Kohyabhai Chauhan Shri Maganbhai Gokalbhai Zala Shri Shivabhai Mahijibhai Parmar Shri Pravinsinh Fulsinh Solanki Shri Chandubhai Madhubhai Parmar Shri Bhaijibhai Amarsinh Zala Shri Bipinbhai Manishankar Joshi Smt. Sarayuben Bharatbhai Patel Shri Ranjitbhai Kantibhai Patel

Chairman Vice-Chairman Director Director Director Director Director Director Director Director Director Director Managing Director

Shri B. M. Vyas G.C.M.M.F District Registrar Managing Director

Shri Deepak Dalal Shri Rahul Kumar

Amul products have been in use in millions of homes since 1946. Amul Bu tter Amul M ilk Powder

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Amul Ghee Amulspray Amul C heese Amul Ch ocolates Amul Shrikh and Amul I ce – cream Nutramul Amul M ilk

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AMUL(G.C.M.M.F.) POUCH MILK

GOLD

TAZA

BUTTER MILK

S.N

1LIT

500ML

1LIT

500ML

200ML

500ML

Rs258.0

Rs126.00

O 1

ADA

RATE

PER Rs314.40

Rs314.40 Rs254.40 Rs254.4

CRATE

0

0

(12 LIT’s) 2

ADA MARGIN

Rs 5.16

Rs 5.16

Rs 5.16

Rs 5.16

Rs 5.16

Rs 6.00

3 4 5

CRATES VOLUME RETAILERS PRICING MARKET

12LIT’s Rs26.20 Rs27.00

12LIT’s Rs 13.10 Rs13.50

12LIT’s Rs21.20 Rs22.00

12LIT’s Rs10.60 Rs11.00

12LIT’s Rs4.30 Rs4.50

12LIT’s Rs5.50 Rs6.00

PRICE(M.R.P)

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Present Amul(G.C.M.M.F.) Pouch Milk & Price Constituents of milk

Fat

Water

Substances associated with fat

True Fats

Lecithine

Cholesterol

Lactose

Proteins &other

C

SNF

i

Wh

Carotene

Vitamins A,D,K&E

Minerals

Phosphates,Citrates

P ti

Minor Constituents

Pigments

Vit

.

PASTEURIZATION: It is the process of heating milk to 70 degree Celsius for 15 second and then cooling down. It remove all the harmful bacteria from milk, which is not done in loose milk.

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Types of Fresh Milk: Amul Taaza Toned Milk 3% fat .

Amul Gold Full Cream Milk 6% fat.

Amul Shakti Standardized Milk 3% fat .

Amul Smart Double Toned Milk 1.5% fat .

AMUL GOLD

Serving size Energy Energy from fat Total fat

500ml 87Kcal

6gm

54 Kcal Phosphorus

130 mg

Saturate fat

3.7 gm

Sodium

Cholesterol

16 mg

Thiamine

42 mcg

5.0 gm

Riboflavin

120 mcg

Niacin

100 mcg 7.5 mcg

Total carbohydrate Added sugar

.0 gm

Protein

3.3 gm

Folic acid

Calcium

150 gm

Vit A(Retinol)

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50 mg

65mcg

AMUL TAZA

Serving size Energy

500ml 58 Kcal

Energy from fat Total fat

3 gm

Sodium

Saturate fat

1.9 gm

Cholesterol

8 mg

Tota...